Privatization by Franchising: Commissioned Entrepreneurs

Title

Privatization by Franchising: Commissioned Entrepreneurs

Creator

Karaaslan, Mehmet E.

Date

2014-09-05

Date Available

2014-09-05

Date Issued

2005

uri

http://collections.southwestern.edu/s/suscholar/item/55

Abstract

Franchise privatization of non-profitable Sumer Holding sales outlets across Turkey converted the civil servants working in these outlets to private, risk-taking and creative entrepreneurs. The success of and the efficiency gains from franchise privatization at the firm level originate, in part, from significant changes in motivation, attitudes and initiative of the new –commissioned- entrepreneurs, and at the social level, franchise privatization with a partial line forcing contract enabled the publicly held parent company to continue fulfilling its historical mission of providing cheap and essential inputs to the low income consumers and communities in an uninterrupted manner. To be sure, where the local markets are oligopolistic and concentrated, there is evidence of anticompetitive conduct and collusive behavior by the new owners due to the dominant and price leadership role historically played by Sumer Holding Company. This explains some of their success after privatization.

Language

English

Relation

Brown Working Papers in the Arts and Sciences; 2005, no. 2

Subject

Privatization -Turkey

Franchises (Retail trade) - Turkey

Sumer Holding Company (Turkey)

Type

Working Paper